Reports are that Iran will allow Japan ships to pass through the Strait of Hormuz with greater ease. Iran Pres Pezeshkian in a call with Japanese PM Sanae Takaichi said that
Iran has full readiness to facilitate marine traffic through the Strait They will try to make the passage of Japanese ships easier.
Earlier Justin posted that Iran said that 15 vessels, including four oil tankers, transited the Strait of Hormuz over the past 24 hours after receiving permission from Tehran. However, there is considerable uncertainty over the claim, as many of the ships may be part of so-called “shadow fleets” that operate with limited transparency and often disable tracking systems.
Even if the reported traffic is accurate, it remains far below pre-war levels, highlighting the continued disruption to one of the world’s most important energy shipping routes. Analysts suggest Iran may be emphasizing these crossings to demonstrate progress and support ongoing negotiations with the United States, but a lasting recovery in shipping activity faces a major hurdle: maritime insurance.
Until insurers are willing to cover vessels transiting the strait, many commercial operators are likely to remain on the sidelines given the risk that tensions between the U.S. and Iran could quickly flare up again.
The USDJPY has inched to new highs on the headlines with the pair reaching 159.55. The high from last week moved up to 159.645 and is the next upside target followed by a swing area between 159.705 and 159.96. Recall the price earlier in March and again in April, the price extended above the 160.00 ceiling to a high of 160.46 in March, and 160.717 in April. In April, the price plunging on intervention concerns bottoming at 155.04 before starting the run back to the upside.
This article was written by Greg Michalowski at investinglive.com.